Have the robots become self-aware? Is Skynet real? Twitter is buzzing with these tweets. And then there is Sarah O’Connor’s (not John Connor’s mom, but a correspondent for the Financial Times) innocuous tweet about the incident at Volkswagen plant which went viral and caught her by surprise. While people across the world are debating about the recent incident at the Volkswagen plant in Kassel, Germany where a robot killed an employee, we will talk about completely different kind of bots that can make money for you.
Trading, whether it is bitcoin, forex or commodities follows a simple logic. Buy them and sell them at a higher price. More the price difference the better. That’s just an overview, not to mention the technicalities, experience and other nuances involved in it. One can either keep a constant eye out on the market trends and trade or have a bot that can do trading for them. Bots in this context are self-executable software programs that work according to certain set rules. Trading bots monitor the activities in the exchanges they are connected with to sell and buy orders within set parameters on its owner’s behalf.
Trading bots are a rage in the cryptocurrency market. There are different types of bots which one can use to trade bitcoin or any other cryptocurrency. One can either select a bot for inter-exchange arbitrage or technical analysis bots for the purpose. Depending upon each individual’s risk appetite one can select the frequency of trading as well.
Given the volatile nature of digital currencies, it is advantageous to use bots with well-defined parameters for trading. Gone were the days when one had to develop his own bot or hire someone to do it. There are off the shelf trading bots available that can be bought and deployed after setting desired parameters. Cryptotrader allows people to build their own trading bot within minutes. Other bots like Butterbot and Haas Online are available for Chrome browser and Windows respectively.
These bots can make trading efficient, but they are only as good as their programmer. If the person using trading bots doesn’t understand the market then the bots are bound to make poor trading decisions resulting in losses.